NEW YORK (TheStreet) -- Shares of Alcoa were gaining 2.1% to $16.45 in pre-market trading Monday after Nomura upgraded the aluminum supplier to "buy" from "neutral." The analyst firm raised its price target for the company to $23 from $15. Nomura also raised its 2014 and 2015 EPS estimates for Alcoa to 91 cents a share and $1.25 a share, up from 80 cents a share and 90 cents a share, respectively. Analysts Curt Woodworth and Alexander M. Burnes wrote , "Our previous cautious view on AA had been based on concerns in the packaging segment and expectations for premiums to decline in 2H-14. While AA shares have been range-bound since mid year the aluminum market has shifted into greater deficit, driving physical premiums to above $500/tonne in US/Europe with FX providing a meaningful EPS tailwind of $0.20 annualized. The ongoing displacement of packaging capacity to automotive should stabilize packaging margins while significant growth in automotive should drive meaningful EBITDA growth for AA." Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. ---------------- Separately, TheStreet Ratings team rates ALCOA INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate ALCOA INC (AA) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity." Highlights from the analysis by TheStreet Ratings Team goes as follows: AA's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share. Powered by its strong earnings growth of 500.00% and other important driving factors, this stock has surged by 46.81% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year. The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 520.8% when compared to the same quarter one year prior, rising from $24.00 million to $149.00 million. Net operating cash flow has increased to $249.00 million or 16.35% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -31.38%. ALCOA INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ALCOA INC swung to a loss, reporting -$2.15 versus $0.17 in the prior year. This year, the market expects an improvement in earnings ($0.86 versus -$2.15). You can view the full analysis from the report here: AA Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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